Orange and Morrison Launch €3 Billion French Data Center Joint Venture

French telecom giant Orange and global infrastructure investor Morrison have announced a joint venture to create a new data center company in France, aiming to expand Orange’s data center portfolio tenfold to 400 megawatts. The move underscores France’s ambition to build sovereign digital infrastructure capable of meeting surging demand from cloud computing and artificial intelligence.

Under the agreement, Orange will contribute five existing data centers across four campuses located in Chevilly-Larue, Aubervilliers, Chartres, and Val-de-Reuil. Morrison will provide equity and debt financing, with the combined investment valued at €3 billion (approximately US$3.41 billion). Ownership will be split equally between the two firms, according to a press release.

“We are absolutely convinced that France will need sovereign, trusted digital infrastructure if it is to rise to the challenge of surging demand driven by cloud and artificial intelligence. This contemplated joint venture with Morrison will allow us to unlock the value of our existing assets and strengthen our position in data centres,” said Christel Heydemann, CEO of Orange Group.

The joint venture is positioned as a sovereign offering tailored to the growing AI and cloud service demands in France. Orange Business will serve as the exclusive distributor of colocation and hosting services to large enterprises, SMEs, and public-sector entities, while Orange retains operational control over areas dedicated to its own operations.

“Together with Orange, we are contemplating the creation of a platform that combines strategic infrastructure assets, operational expertise and long-term capital to meet that challenge. We believe France is exceptionally well positioned to play a leading role in Europe’s digital economy, and this partnership represents an important step towards building the sovereign infrastructure needed to support future growth and competitiveness,” said William Smales, Chief Investment Officer at Morrison.

The transaction is expected to be signed by the end of 2026, subject to consultations with relevant representative bodies and regulatory approvals. The deal is anticipated to close during the first quarter of 2027.

France is experiencing a sharp increase in data center demand as digitalization accelerates across industries. According to Arizton Advisory & Intelligence, the country’s data center capacity is expected to expand from over 600 MW to more than 5 GW. France’s investment in and support for low-carbon energy will play a critical role in powering that load, likely attracting investors seeking sustainable data center deployments.